S&P 500 which one?

[NeuroCM]

I have decided in my solo K I'm going to choose an index fund that tracks the S&P. I am choosing between Vanguard index 500 (VFIAX) which has no transaction fee and expense ratio 0.04% and Fidelity 500 (FXAIX) which has transaction fee but expense ratio 0.01%. Then again, I look at Schwab (SWPPX) and there's no transaction fee and 0.02% expense ratio. How do I choose between these. The investments look very similar but the cost is different. What am I missing??

[Tim]

"What am I missing??" Time spent noodling it. Where do you have your account? There, done.

[Peds]

why are you picking s&p in the first place?

[NeuroCM]

I have Vanguard for my Roth, Fidelity for my 401k, and opened a solo K with e trade recently. Trying something new in this smaller account so figured Id do at least a certain proportion of S&P

[DynamicHipScrew]

Differences are minimal. I have VOO in one account and SPY in another.

[Peds]

I have Vanguard for my Roth, Fidelity for my 401k, and opened a solo K with e trade recently. Trying something new in this smaller account so figured Id do at least a certain proportion of S&P

i dont pick s%p when a total market fund exists.

but to answer your original question: you choose the cheapest one. they are literally all the same.

[VagabondMD]

In 2020, you should not be paying a transaction fee for an S&P 500 fund. You did not indicate where your assets are held, but you can likely buy it for no fee there.

For perspective, when I first bought the Vanguard S&P 500 fund, the expense ratio was 0.4%, and it was the cheapest mutual fund available. Today, they are practically free. Do not overthink it.

[Cubicle]

I'd definitely avoid the transaction fee. Wouldn't that hit with each contribution?

[Hatton]

These fees are so low they make no difference

[jhwkr542]

They're all the same. I keep total stock market index funds in my retirement accounts and s&p 500 fund in taxable for purposes of TLH and avoiding a wash sale rule. The s&p500 and total market funds have such high correlation that I consider them identical when looking at my portfolio.

[EntrepreneurMD]

Nasdaq/100 was the index to be in the past few years, perhaps SP or total markets will start catch-up. I shifted there 2014.

Anyway, I think total market outperformed SP index this year by about 33% (20% vs. 15%, VTSAX vs VFIAX).

[Peds]

Anyway, I think total market outperformed SP index this year by about 33% (20% vs. 15%, VTSAX vs VFIAX).

google.

total US 20.4% YTD
s&p500 17.6% YTD

thats 16% difference.

[EntrepreneurMD]

google.

total US 20.4% YTD
s&p500 17.6% YTD

thats 16% difference.

Everywhere I check I see 15.6% SPX YTD. I also saw this number on CNBC. Interestingly though you are correct, I see VFIAX at 17.6% so not sure where that difference cones from. I mistakenly assumed VFIAX just mirrored SPX.

S&P 500 PR (SPX) Quote | Morningstar

S&P 500 Index - CNNMoney.com

Vanguard 500 Index Admiral (VFIAX) Performance | Morningstar

Although most would still be happy with 16% more.

Thanks!

[Tim]

google.

total US 20.4% YTD
s&p500 17.6% YTD

thats 16% difference.

I would hope one chooses with a little more understanding. YTD regardless is a poor basis. Personal preference. Know what you own.

[childay]

They're all the same. I keep total stock market index funds in my retirement accounts and s&p 500 fund in taxable for purposes of TLH and avoiding a wash sale rule. The s&p500 and total market funds have such high correlation that I don't consider them identical when looking at my portfolio.

That's what I do as well, but in reverse.